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Author: Allegra Hobbs
Publisher:
ISBN: 9781529752014
Category : COVID-19 (Disease)
Languages : en
Pages :
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Book Description
This case covers the U.S. Congress's Paycheck Protection Program (PPP), which was meant to provide funding for small businesses struggling under lockdown. Through a per-location loophole, however, major funds were allocated to large corporate chains, leaving small businesses without a safety net and the public wondering whom the PPP was intended to help.
Author: Allegra Hobbs
Publisher:
ISBN: 9781529752014
Category : COVID-19 (Disease)
Languages : en
Pages :
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Book Description
This case covers the U.S. Congress's Paycheck Protection Program (PPP), which was meant to provide funding for small businesses struggling under lockdown. Through a per-location loophole, however, major funds were allocated to large corporate chains, leaving small businesses without a safety net and the public wondering whom the PPP was intended to help.
Author: Michael Kamburowski
Publisher:
ISBN:
Category : Labor unions
Languages : en
Pages : 68
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Book Description
Author: João Granja
Publisher:
ISBN:
Category : COVID-19 (Disease)
Languages : en
Pages : 41
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Book Description
This paper takes an early look at the Paycheck Protection Program (PPP), a large and novel small business support program that was part of the initial policy response to the COVID-19 pandemic. We use new data on the distribution of PPP loans and high-frequency micro-level employment data to consider two dimensions of program targeting. First, we do not find evidence that funds flowed to areas more adversely affected by the economic effects of the pandemic, as measured by declines in hours worked or business shutdowns. If anything, funds flowed to areas less hard hit. Second, we find significant heterogeneity across banks in terms of disbursing PPP funds, which does not only reflect differences in underlying loan demand. The top-4 banks alone account for 36% of total pre-policy small business loans, but disbursed less than 3% of all PPP loans. Areas that were significantly more exposed to low-PPP banks received much lower loan allocations. As data become available, we will study employment and establishment responses to the program and the impact of PPP support on the economic recovery. Measuring these responses is critical for evaluating the social insurance value of the PPP and similar policies.
Author: David Autor
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
The Paycheck Protection Program (PPP) provided small businesses with roughly $800 billion dollars in uncollateralized, low-interest loans during the pandemic, almost all of which will be forgiven. With 93 percent of small businesses ultimately receiving one or more loans, the PPP nearly saturated its market in just two months. We estimate that the program cumulatively preserved between 2 and 3 million job-years of employment over 14 months at a cost of $170K to $257K per job-year retained. These estimates imply that only 23 to 34 percent of PPP dollars went directly to workers who would otherwise have lost jobs; the balance flowed to business owners and shareholders, including creditors and suppliers of PPP-receiving firms. Program incidence was highly regressive, with about three-quarters of PPP funds accruing to the top quintile of households. This compares unfavorably to the other two major pandemic aid programs, enhanced UI benefits and Economic Impact Payments (i.e. stimulus checks). PPP's breakneck scale-up, its high cost per job saved, and its regressive incidence have a common origin: PPP was essentially untargeted because the United States lacked the administrative infrastructure to do otherwise. The more targeted pandemic business aid programs deployed by other high-income countries exemplify what is feasible with better administrative systems. Building similar capacity in the U.S. would enable greatly improved targeting of either employment subsidies or business liquidity when the next pandemic or other large-scale economic emergency occurs, as it surely will.
Author: R. Glenn Hubbard
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Enacted March 27, 2020, the Paycheck Protection Program (PPP) was the most ambitious and creative fiscal policy response to the Pandemic Recession in the United States. PPP offers forgivable loans -- essentially grants -- to businesses with 500 or fewer employees that meet certain requirements. In this paper, we present evidence that PPP has substantially increased the employment, financial health, and survival of small businesses, using data from the Dun & Bradstreet Corporation. We use event studies and standard difference-in-difference models to estimate the effect of a small business applying for larger PPP loans and of a small business being eligible for PPP based on size. While our findings are informative, we believe it is too early to issue conclusive judgment on PPP's success. We offer lessons for the future from the PPP experience thus far.
Author:
Publisher:
ISBN:
Category : Conservatism
Languages : en
Pages : 148
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Book Description
Author: Chris Pilkerton
Publisher: Post Hill Press
ISBN:
Category : Political Science
Languages : en
Pages : 123
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Book Description
“We were in absolute crisis, and we were risking a major, major meltdown of financial conditions, economic conditions and health conditions simultaneously.” —Steven Mnuchin, Secretary of the US Treasury, September 2020 “We packed months of legislative process into five days.” —US Senator Charles Schumer, March 2020 “Be fast, have no regrets. You must be the first mover. The virus will always get you if you don’t move quickly.” —Dr. Michael Ryan, World Health Organization/epidemiologist, March 2020 ____________________________________________ In early 2020, the American economy was roaring. Unemployment was historically low, and small business optimism was on the rise. And then the coronavirus changed everything. Lockdowns, massive unemployment claims, and small business closures spread throughout the country. Those who could do so worked from their homes, virtually educating their children and trying to maintain some sense of normalcy for their families. All they could do was watch the news as the media reported that millions of Americans were infected with the virus, and that many would ultimately lose their lives to complications associated with the disease. Along Main Streets across the country, the dreams of countless entrepreneurs faced permanent ruin; their hopes hung in the balance in the halls of Congress and within the walls of the Oval Office. The CARES Act was passed and signed into law in March 2020, with a price tag of over $2 trillion. Small businesses and their workers relied on various programs, including the now famed Paycheck Protection Program, which ultimately sought to inject $800 billion into the US economy. This is the story of that time, and what the world learned about the resilience of the entrepreneur. In Plandemic, former US Small Business Administration Acting Administrator and White House Senior Policy Advisor Chris Pilkerton contends that when the next pandemic hits, policymakers must be prepared with a focused action plan to support the economic engine of the United States of America: small business.
Author: Christopher Neilson
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The Paycheck Protection Program (PPP) extended 669 billion dollars of forgivable loans in an unprecedented effort to support small businesses affected by the COVID-19 crisis. This paper provides evidence that information frictions and the "first-come, first-served” design of the PPP program skewed its resources towards larger firms and may have permanently reduced its effectiveness. Using new daily survey data on small businesses in the U.S., we show that the smallest businesses were less aware of the PPP and less likely to apply. If they did apply, the smallest businesses applied later, faced longer processing times, and were less likely to have their application approved. These frictions may have mattered, as businesses that received aid report fewer layoffs, higher employment, and improved expectations about the future.
Author: Mark E. Schweitzer
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Author: Sean Lowry
Publisher:
ISBN:
Category : COVID-19 (Disease)
Languages : en
Pages : 10
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Book Description
